Walt Disney Co. on Thursday announced it struck a landmark agreement with OpenAI, combining a three-year character licensing deal with a $1 billion equity investment—marking Hollywood's largest stake in an artificial intelligence (AI) model developer to date. Under the pact, OpenAI's Sora video generation platform will gain access to more than 200 Disney characters spanning its animation, Marvel, Pixar and Star Wars franchises.

AI Generated Image

Disney CEO Bob Iger said the collaboration would "thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works." The company will become a major OpenAI customer, deploying ChatGPT for employees and building new Disney+ experiences using the startup's tools.

OpenAI CEO Sam Altman called Disney "the global gold standard for storytelling," describing demand for Disney characters as "off the charts." The arrangement includes warrants allowing Disney to purchase additional equity, and the deal is subject to negotiation of definitive agreements and board approvals.

The licensing deal, which Iger told CNBC would be exclusive to OpenAI for roughly one year before Disney can engage other AI companies, represents a significant shift for a studio that has aggressively protected its intellectual property through litigation. On the same day the OpenAI deal was announced, Disney sent a cease-and-desist letter to Alphabet Inc.'s Google over alleged unauthorized use of copyrighted content for AI training.

Character Library Excludes Actor Likenesses

Under the three-year agreement, Sora users will be able to generate short videos featuring characters including Mickey Mouse, Darth Vader, Cinderella, Captain America and Yoda, along with props, vehicles and environments from Disney's franchises. ChatGPT Images will similarly generate still images using the same intellectual property.

The deal explicitly excludes talent likenesses and voices. A Sora-generated video could feature Woody from Toy Story, for example, but without Tom Hanks' voice or likeness. Disney and OpenAI affirmed "a shared commitment to maintaining robust controls" to prevent illegal or harmful content and "to respect the rights of individuals to appropriately control the use of their voice and likeness."

Curated selections of Sora-generated fan videos will stream on Disney+. The characters are expected to become available on Sora and ChatGPT Images in early 2026. Iger told CNBC these would be "30-second videos," not shorts or full-length features, aimed particularly at younger audiences.

Strategic Investment in AI Future

The $1 billion investment makes Disney a significant stake holder in OpenAI, which was valued at $500 billion in a secondary share sale at the start of October. Iger described the equity stake as "a way in" to artificial intelligence, which he expects to have significant long-term impact on Disney's business.

"We've always felt that if it's going to happen, including disruption of our current business models, then we should get on board," Iger told CNBC. He said Disney chose OpenAI because the startup "is respecting and valuing its creativity, characters and creators" and has established guardrails around property use.

The agreement does not permit OpenAI to train its machine learning models on Disney content. Disney will use OpenAI's APIs to build new products and tools, including for Disney+, while deploying ChatGPT across its workforce.

Divergence from Previous Studio Stance

The partnership represents a notable shift for Hollywood studios, which have resisted engagement with AI companies over data usage concerns and potential labor conflicts. Bloomberg News previously reported that OpenAI spent months in discussions with major studios including Disney, Comcast Corp.'s Universal Pictures and Warner Bros. Discovery Inc., but encountered reluctance.

Disney and Comcast sued AI company Midjourney Inc. earlier this year for copyright infringement. The Writers Guild of America criticized Disney's OpenAI deal, stating in a letter to members that it "appears to sanction" OpenAI's "theft" of writers' work.

Iger defended the approach, noting that Disney agreed to license because OpenAI is "respecting and valuing its creativity" and paying licensing fees. "The fact that we're getting paid for this recognizes the value being created," he told CNBC.

The arrangement resembles Disney's 2023 deal with Epic Games Inc., in which Disney acquired a $1.5 billion stake to create a games and entertainment universe featuring Disney characters in Fortnite. However, the OpenAI agreement differs in focusing on user-generated content creation rather than company-developed experiences, and carries greater sensitivity around AI's impact on creative industries.

OpenAI has raised tens of billions of dollars to cover costs for talent, chips and data centers needed to support its AI models. The Disney investment provides both capital and content legitimacy as the startup seeks to expand Sora's commercial appeal beyond its September launch as an invitation-only social app.

Disney Licenses Iconic Characters to OpenAI, ...